- Increased supply affects net income in Athens and Thessaloniki
- Positive trend in holiday destinations
- 13% rise in accommodation supply countrywide
- Detailed findings on occupancy and prices
Supply Surge Hits Urban Rentals
An upsurge in available short-term rental properties has notably impacted net income in Athens and Thessaloniki. This contrasts with other regions in Greece, where a favourable image of holiday destinations keeps the trend positive.
Research from Key Data for the Association of Short-Term Rental Companies (STAMA) indicates a 13% increase in rental units nationwide, exceeding 150,000. In Athens alone, accommodation rose by 21.3%, reaching 12,576 units compared to 10,367 the previous year. This significant supply expansion led to lower occupancy rates and revenue drops, notwithstanding higher nightly rates. The centre of Athens saw a decrease in average occupancy for June through August by 11-35%, and overall occupancy in Attica fell to 33%, a 7% drop.
Regional Occupancy and Pricing Trends
Countrywide, occupancy stands at 34%, marginally dipping by 1% from last year. Crete and the Peloponnese, however, saw minor occupancy increases of 1% and 3%, respectively. Analysts highlight the impact of major events like the Euro 2024 tournament and the upcoming Paris Olympics, which have drawn many foreign visitors away. Despite this, a recovery for Greek destinations remains possible, as many bookings are often made within 30 days of arrival.
The average daily rental rate (ADR) for short-term rentals in Greece has risen to €209, a 5% increase from last summer. Different regions display varying trends:
- Peloponnese: Smallest increase at 4%
- Thessaloniki: Largest hike to €77, an 8% rise
- Athens and Attica: Annual increases of 7% and 6%, with average prices per night at €119 and €133, respectively.
The burgeoning supply of short-term rentals has distinct effects across Greece. Urban areas like Athens and Thessaloniki face revenue challenges, while holiday destinations enjoy steady growth. The evolving landscape underscores the importance of strategic planning in managing rental properties amidst fluctuating tourist behaviours and external events. This dynamic environment highlights the ongoing need for adaptability within the rental market.
